On October 27, 2023, the IRCC announced new wage requirements for LMIA-based work permits in Canada, effective January 1, 2024. These changes are designed to ensure that temporary foreign workers are paid fairly and that Canadian workers are not disadvantaged.

Key Changes

• Employers will be required to check temporary foreign workers’ wages every year to make sure they keep up with wage increases for their job and region of work.
• Employers in seven selected sectors will continue to be allowed to hire up to 30% of their workforce in low-wage positions through the TFWP.
• The maximum length of work will remain at two years for jobs paying less than the provincial or territorial median hourly wage.
• The maximum validity time of the Labour Market Impact Assessment (LMIA) will be reduced from 18 months to 12 months.

What are the new wage requirements?

Under the new rules, employers will be required to pay temporary foreign workers the prevailing wage for their job and region of work. The prevailing wage is defined as the median hourly wage paid to Canadian workers in the same occupation and region.

Employers can find the prevailing wage for a particular occupation and region by using the Government of Canada’s Job Bank website.

How often do employers need to check the prevailing wage?

Employers must check the prevailing wage every year and make sure that their temporary foreign workers are being paid at least that amount. If the prevailing wage increases, employers must also increase the wages of their temporary foreign workers.

How employers can comply

Employers can comply with the new wage requirements by:

• Reviewing temporary foreign workers’ wages every year and adjusting them as needed to keep up with wage increases for their job and region of work.
• Using the Government of Canada’s Job Bank Wage Search tool to determine the prevailing wage for their job and region of work.
• Maintaining documentation of their wage review process and the wages paid to temporary foreign workers.

How temporary foreign workers can protect themselves

Temporary foreign workers can protect themselves by:

• Knowing their rights and the requirements of the TFWP.
• Keeping a record of their wages and hours worked.
• Contacting the Employment Standards Branch in their province or territory if they have any concerns about their wages or working conditions.

What are the consequences for employers who do not comply with the new wage requirements?

Employers who do not comply with the new wage requirements may be subject to administrative penalties, such as fines. They may also be denied future LMIAs.

What other changes are being made to the Temporary Foreign Worker Program (TFWP)?

In addition to the new wage requirements, the government is also making a number of other changes to the TFWP, including:

• Continuing to allow employers in seven selected sectors to hire up to 30% of their workforce in low-wage positions through the TFWP.
• Keeping the maximum length of work at two years for jobs paying less than the provincial or territorial median hourly wage.
• Changing the maximum validity time of the Labour Market Impact Assessment (LMIA) from 18 months to 12 months.

Why these changes are important

The new wage requirements are designed to address concerns about wage suppression and ensure that temporary foreign workers are paid at the same rate as Canadian workers for doing the same job. The reduction in the validity time of the LMIA is designed to better reflect the job market and ensure that employers are hiring temporary foreign workers only when necessary.

How can CanAm help you?

Our Canadian immigration firm has extensive experience helping businesses and individuals with the Temporary Foreign Worker Program. We can help you to:

• Determine if you need an LMIA.
• Apply for an LMIA and work permit.
• Comply with all of the requirements of the TFWP, including the new wage requirements.

We can also provide advice on the other changes to the TFWP. Contact us today to learn more.

If you are an employer who hires temporary foreign workers, or if you are a temporary foreign worker who has questions about the new wage requirements or other changes to the TFWP, we can offer you a free consultation call. We can help you to understand the changes and ensure that you are in compliance with the law.

Comments

comments